Microsoft has taken its most significant step yet toward eliminating passwords by making new Microsoft accounts "passwordless by default." The change means new users will never need to create a password, instead using more secure authentication methods like biometrics, PINs, or security keys.

The move builds on Microsoft's decade-long push toward passwordless authentication that began with Windows Hello in 2015. According to company data, passkey sign-ins are eight times faster than password and multi-factor authentication combinations, with users achieving a 98% success rate compared to just 32% for password users. Microsoft also said it now registers nearly one million passkeys daily across its consumer services.

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